Titan Company Ltd.'s focus on wedding and high-value studded jewellery bolstered its July-September quarter earnings and helped it increase market share.
Overall, the jewellery segment registered 36 percent year-on-year growth, Titan's Chief Financial Officer S Subramaniam told BloombergQuint in an interview. “The focus on wedding jewellery is playing out very well for the company and has largely contributed to the growth,” he added.
The watch-to-jewellery maker's net profit jumped 67 percent to Rs 278 crore compared to that a year ago, it said in a statement on Friday. Revenue rose 29 percent year-on-year to Rs 3,473 crore aided by a jump in jewellery sales.
Titan's Golden Harvest Scheme contributed 17-18 percent to the company's overall revenue and Subramaniam expects its contribution to grow. Titan has received Rs 800 crore worth of deposits in the scheme so far.
Also Read: Titan Jumps Most In 12 Years After September Quarter Profit Beats Estimate
Titan's top line was also aided by revenue from the watches segment which rose 9 percent on a year-on-year basis. Subramaniam expects to maintain this run rate but said the segment is unlikely to achieve double-digit growth in the near future.
“While India continues to grow, the problem is in the international market which is dampening the numbers that you are seeing,” he said. He added that volume growth for the watches segment has been encouraging over the last few quarters.
Shares of Titan also rose as much as 25 percent, the most in 12 years, to Rs 824.65 on the BSE.
Watch the full interview here.
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